10 June 2008
Please let me know what is the rate of interest & if i submit in this month i.e. June '08, upto what date i have to pay interest? Will that interest be born by employee or employer for late deduction? Also what would be the treatment of that interest in books of employer & employee?
Please clarify me the consequence of not deducting TDS on salaries?
10 June 2008
for late payment of tds you have to pay interest @ 1%p.m of the deductible amount from the date of deductible to date of actual payment, the employer has to pay and it is not allowable as a expenditure.
10 June 2008
Interest @ 1% per month or part there of has to be paid.
The Interest will be borne by the employer only. It is not the fault of the employee.
Interest will be an allowable expenditure in the book of the employer. The question of treatment of interest in the books of employee does not arise.
It is a legal obligation on your part to deduct TDS. In case of non deduction employer will be treated as assessee in default and the amt will be recivered from the employer. Penal consequence includes interest and penalty.
CAclubindia
